America is experiencing a housing crisis. Housing supply is tight. The supply of affordable housing is even tighter, and persistently high mortgage rates are making things worse. But the extent of the problem varies from country to country.
That’s why companies consider the local residential real estate market when deciding on a location. They want prospective employees to be able to find an affordable place that is also a good investment. That makes the housing market an important element of the country’s business competitiveness.
CNBC considered the housing market as part of the Economy category in America’s Top States for Business, an annual ranking of all 50 states. In this year’s methodology, countries are ranked based on their balance of affordability and value. We consider price appreciation and seller profitability, as well as affordability, inventory, and home starts. We also look for signs of stress, such as foreclosure activity and underwater mortgages.
While every buyer and seller has different priorities, these ten states’ housing markets can give you the best bang for your buck.
10. Delaware
Aerial photo home of Brookside Delaware USA
Felixmizioznikov Istock | Getty Images
Housing affordability is about average in the First State, but your Delaware housing dollar gets a big boost from low property taxes. Delaware homeowners pay an effective tax rate of less than half a percent, according to real estate data firm ATTOM. That is the fourth lowest in the country.
2024 Economic Ranking: No. 10 (Top Country Grade: B-)
Appreciation: 4.73%
Inventory (July): 2 months
Affordability score (0 to 2, with 2 being the most affordable): 0.56
Effective property tax rates: 0.43%
Average selling price: $360,700
9. Indiana
Exterior of a ranch house in a neighborhood in Indiana, Midwest, USA
Wanderluster | Istock | Getty Images
The Hoosier State offers a rare combination of affordability including low property taxes, as well as healthy price appreciation. Inventory remains tight, but Indiana home buyers are still finding what they’re looking for at attractive prices.
2024 Economic Ranking: No. 19 (Highest Country Class: C)
Appreciation: 8.02%
Inventory (July): 2 months
Affordability score: 0.81
Effective property tax rates: 0.86%
Average selling price: $265,300
8. Georgia
A sign outside a home for sale in Atlanta, Georgia, USA
Elijah Novel | Bloomberg Getty Images
Home inventory is being built in The Peach State, which is great for affordability. Home builders have been active as well. However, price appreciation remains healthy.
2024 Economic Ranking: No. 7 (Highest Country Class: B)
Appreciation: 7.16%
Inventory (July): 3 months
Affordability score: 0.59
Effective property tax rates: 0.82%
Average selling price: $385,600
7. Tennessee
Cynthia Holzapfel gestures as she describes the downstairs unit of her home in Summertown, Tennessee on June 15, 2024. Cynthia Holzapfel rents her downstairs unit to families of all ages.
Kevin Wurm Washington Post Getty Images
Despite some of the lowest property taxes in the country, affordability is an issue in the Volunteer State. The new law includes incentives for more affordable housing in multifamily units. In the single-family market, inventory has begun, which has moderated price gains and may bring more buyers to the market.
2024 Economic Ranking: No. 3 (Top Country Level: B+)
Appreciation: 6.24%
Inventory (July): 3 months
Affordability score: 0.49
Effective property tax rates: 0.44%
Average selling price: $393,000
6. Nevada
Contractors work on a home under construction in the Versilia master-planned community of the Southern Highlands in this aerial photo taken in Las Vegas, Nevada, USA
Roger Kisby Bloomberg Getty Images
The Silver State housing market is historically volatile, and this year is no exception. But inventory is manageable, and home construction is active. While affordability continues to be an issue, prices have moderated – good for buyers, not for sellers. Property taxes are low. Home equity is healthy despite an increase in foreclosure activity.
2024 Economic Ranking: No. 8 (Highest Country Class: B)
Appreciation: 3.39%
Inventory (July): 2 months
Affordability score: 0.43%
Effective property tax rates: 0.48%
Average selling price: $458,300
5. New Jersey
An island community of coastal towns in New Jersey, in Barnegat Bay.
Johnrob | E+ | Getty Images
Home prices rose in The Garden State last year as the housing market remained active. Affordability could be better, but it doesn’t match the average income. However, New Jersey has the second highest property taxes in the country after Illinois, and a high foreclosure rate.
2024 Economic Ranking: No. 17 (Top Country Grade: C+)
Appreciation: 11.38%
Inventory (July): 2 months
Affordability score: 0.56
Effective property tax rates: 1.64%
Average selling price: $532,400
4. North Carolina
Workers build a house in Lillington, North Carolina, USA
Allison Joyce Bloomberg Getty Images
Homebuilders are busy in The Tar Heel State, with the second highest rate of housing since the end of the year after fast-growing Alabama. But inventory is still tight enough to maintain price appreciation. Property taxes are reasonable, especially given the country’s rapid growth.
2024 Economic Ranking: No. 4 (Top Country Level: B+)
Appreciation: 6.98%
Inventory (July): 2 months
Affordability score: 0.52
Effective property tax rates: 0.6%
Average selling price: $383,700
3. Arizona
A for sale sign outside a mobile home at Coyote Ranch in Yuma, Arizona on Friday, March 9, 2024.
Washington Post Getty Images
Sellers continue to make good profits in the Grand Canyon State, even as housing inventory builds. Construction activity is strong, and home equity is healthy. Property taxes are low, but so are housing costs.
2024 Economic Ranking: Not. 5 (Top Country Level: B+)
Appreciation: 6.63%
Inventory (July): 3 months
Affordability score: 0.44
Effective property tax rates: 0.41%
Average selling price: $450,800
2. South Carolina
Homes in the Nexton community in Summerville, South Carolina, USA
Sam Wolfe Bloomberg Getty Images
Home prices are rising in the Palmetto State, but housing remains affordable. The price appreciation is likely to increase construction activity, which is one of the reasons inventory levels are rising. Property taxes are low. However, home equity can be better, and foreclosures are on the high side.
2024 Economic Ranking: No. 12 (Top Country Grade: B-)
Appreciation: 9.42%
Inventory (July): 3 months
Affordability score: 0.61
Effective property tax rates: 0.5%
Average selling price: $387,700
1. Florida
View of Duval Street in Key West, United States on May 7, 2024.
Jakub Porzycki Nurphoto Getty Images
The housing market in the Sunshine State is notoriously difficult to gauge, but here’s what we do know: home values are appreciating, and homebuilders are busy trying to meet that demand as new residents pour into the state. Property taxes, while not the lowest, help solve the country’s affordability problem. Some trends are more concerning, such as the rise in foreclosures and many underwater mortgages.
The country is also trying to emerge from a serious insurance crisis that has major implications for home values and affordability. Climate risks in Florida — including risks to housing stock — are real. But for now, Florida’s real estate market is fairly balanced, albeit thinly, and helps bolster the nation’s strongest overall economy.
2024 Economic Ranking: No. 1 (Top Country Level: A+)
Appreciation: 6.85%
Inventory (July): 4 months
Affordability score: 0.44
Effective property tax rates: 0.76%
Average selling price: $420,100
